Question

22 of 60
this test: 60 point(s) possible
this question: 1 point(s) possible
______ is a constant decrease in prices over time.
a. a shortage
b. disinflation
c. inflation
d. a depression
e. deflation

Explanation:

To solve this, we analyze each option:

• Option A: A shortage refers to insufficient supply of a good, not price decrease over time.
• Option B: Disinflation is a decrease in the rate of inflation (prices still rise, but slower), not a constant price decrease.
• Option C: Inflation is a general increase in prices over time, opposite of what's described.
• Option D: A depression is a severe economic downturn (high unemployment, low output), not related to price decrease definition.
• Option E: Deflation is defined as a constant decrease in the general price level over time.

Answer:

E. Deflation